When Fear of Default on Bonds Issued by U

question 18

Multiple Choice

When fear of default on bonds issued by U.S.corporations decline,then

• A)net capital outflow and the exchange rate both rise.
• B)net capital outflow rises and the exchange rate falls.
• C)net capital outflow falls and the exchange rate rises.
• D)net capital outflow and the exchange rate both fall.

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Definitions:

Depressant

A class of drugs that reduce neural activity and slow down the functions of the brain and body.

Hallucinogen

A substance that causes alterations in perception, thought, and mood, leading to hallucinations or sensory distortions.

Dependence

A state in which an individual requires a particular substance or behavior to function normally and experiences physical or psychological withdrawal symptoms without it.

Tolerance

The capacity to accept or endure someone or something different from one's own beliefs, habits, or practices without interference.